In honor of Hispanic Heritage Month, we’re taking a look at the 2024 State of Hispanic Homeownership Report released by the National Association of Hispanic Real Estate Professionals (NAHREP). According to the report, homeownership rate among Latinos in Virginia was 53.7%, and they were responsible for 22.9% of homeownership growth in the commonwealth over the last decade. In this article, we highlight the key takeaways from this report helping understand the homeownership trends of the Latino population in the U.S.

1. Hispanic homeownership rate declines, but more Hispanic households own their homes today than ever before.

In 2024, the Hispanic homeownership rate declined for the first time in a decade (to 49.0%), compared to 49.5% last year. But the total number of Hispanic homeowners still reached a record 9.8 million households, with a net gain of 238,000 new owner-households. This was the largest annual increase of any racial or ethnic group for the second consecutive year, contributing to more than a third of the total homeownership growth nationwide.

2. The rate of Hispanic household formation outpaced homeownership growth.

Hispanic household formation surged, with 676,000 new households in 2024. This accounted for 43.3% of total U.S. household growth, the largest increase in new households among all racial and ethnic groups. This rapid pace of household creation outpaced ownership gains of 238,000 and contributed to the declining homeownership rate

3. Younger and first-time buyers are leading housing demand.

Access to first-time homebuyer resources and educational materials have led to greater enthusiasm among younger Hispanic buyers. With a median age of 31 (eight years younger than the U.S. average), Latinos are aging into prime homebuying years. Also, they tend to buy homes at younger ages than their non-Hispanic counterparts. In 2023, 42.8% of Hispanic purchase originations were made by borrowers under 45, compared to 37.6% among non-Hispanics.

4. Hispanic buyers remain more likely to use FHA financing.

Hispanic homebuyers remain more reliant on FHA loans than other groups. In 2023, 29.5% of Hispanic home purchase originations used FHA financing (up nearly 5% year-over-year), making FHA a vital entry point for first-time and lower-credit borrowers. However, long-term cost burdens persist that make FHA loans less favorable than conventional alternatives.

5. Housing affordability concerns continue to be a barrier to homeownership among the Hispanic population.

Limited housing inventory, high home prices, and persistently elevated mortgage rates have created unprecedented affordability challenges. As of the third quarter of 2024, the U.S. is short an estimated 3.7 million housing units, and home prices now average six times the income of Hispanic households, compared to five times for the general population.

For more information on housing, demographic, and economic trends in Virginia, be sure to check out Virginia REALTORS® other Economic Insights blogs and our Data page.